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Apr 28, 2021 • Press Releases

SIFMA, ICI and DTCC Leading Effort to Shorten U.S. Securities Settlement Cycle to T+1, Collaborating with the Industry on Next Steps

A Shorter Settlement Cycle Will Benefit Investors and Market Participant Firms by Reducing Systemic and Operational Risks

Washington, DC/New York/London/Hong Kong/Singapore/Sydney, April 28, 2021— The Securities Industry and Financial Markets Association (SIFMA), the Investment Company Institute (ICI), and The Depository Trust & Clearing Corporation (DTCC) are collaborating on efforts to accelerate the U.S. securities settlement cycle from T+2 to T+1, the organizations announced today.

Working closely with their members and other key stakeholders, the organizations are outlining key steps to shorten the cycle for secondary market transactions, identifying priority issues that need to be addressed and conducting the necessary due diligence and resolution of these critical issues. The groups began discussing shortening the settlement cycle with their members last year and aim to complete their analysis on the next steps to achieving T+1 by the end of Q3 2021. Shortly after that work, the organizations will develop a definitive timeframe for moving to T+1. In addition to their efforts to shorten the settlement time, SIFMA, ICI and DTCC will assess what it may take to further accelerate the settlement cycle beyond T+1 and explore the role that emerging technologies could play.

“Accelerating the settlement cycle, as we and our partners ICI and DTCC know from experience, is a complex and significant undertaking,” said SIFMA President and CEO Kenneth E. Bentsen, Jr. “A shorter settlement timeframe can benefit investors and market participants by reducing credit, market and liquidity risks and promoting financial stability. Our plan is to fully address the business and operational impacts of the change first, to ensure a smooth transition and avoid any unnecessary market risk.”

“ICI and its members will play an active role in designing the roadmap for shortening the settlement time,” said ICI President and CEO Eric J. Pan. “Regulated funds occupy a prominent place at the intersection of trading and settlement as they are the primary source for the daily trading transactions that brokers process. ICI, SIFMA and DTCC led the move to T+2 settlement in 2017, and we look forward to reviving that successful partnership.”

SIFMA, ICI and DTCC Previously Led Transition from T+3 to T+2

In 2017, SIFMA, ICI and DTCC led the effort to shorten the U.S. securities settlement cycle to T+2. That multi-year effort required significant coordination across the industry and spanned multiple operations, functions and regulations. Similarly, moving to T+1 will be a significant undertaking, and the organizations will partner with relevant stakeholders to achieve the many benefits of accelerating settlement to T+1.

“Recent volumes and volatility demonstrate that the time to move to a shorter settlement cycle is now,” said DTCC President and CEO Michael C. Bodson. “While we are committed to fast-tracking this work and can support T+1 with existing DTCC technology today, we realize that this is a complex undertaking that will require close collaboration across the industry. We look forward to working closely with our colleagues, members, regulators and key stakeholders to achieving T+1 and ultimately delivering reduced risk and margin relief for the benefit of market participants and underlying investors.”

Initiative Needs to Account for Complex Issues

Though SIFMA, ICI and DTCC are committed to pursuing this work vigorously, there are many issues that must be considered before the organizations can determine an implementation date. The organizations identified a series of goals to advance this effort, including:

  • Mitigating risks to investors and industry participants;
  • Analyzing and improving current business and operational processes;
  • Minimizing the disruption of important industry services;
  • Ensuring new risks are not introduced; and
  • Conducting a comprehensive cost-benefit analysis.

In addition, multiple regulatory bodies, including the Securities and Exchange Commission (SEC), will need to be engaged to bring this initiative to fruition.

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About DTCC

With over 45 years of experience, DTCC is the premier post-trade market infrastructure for the global financial services industry. From operating facilities, data centers and offices in 15 countries, DTCC, through its subsidiaries, automates, centralizes and standardizes the processing of financial transactions, mitigating risk, increasing transparency and driving efficiency for thousands of broker/dealers, custodian banks and asset managers. Industry owned and governed, the firm simplifies the complexities of clearing, settlement, asset servicing, data management, data reporting and information services across asset classes, bringing increased security and soundness to financial markets. In 2019, DTCC’s subsidiaries processed securities transactions valued at more than U.S. $2.15 quadrillion. Its depository provides custody and asset servicing for securities issues from 170 countries and territories valued at U.S. $63.0 trillion. DTCC’s Global Trade Repository service, through locally registered, licensed, or approved trade repositories, processes over 14 billion messages annually. To learn more, please visit us at or connect with us on LinkedIn, Twitter, YouTube and Facebook.

Contact: Kristi Morrow, DTCC +1 617 880 6770 [email protected]

About ICI

The Investment Company Institute (ICI) is the leading association representing regulated funds globally, including mutual funds, exchange-traded funds (ETFs), closed-end funds, and unit investment trusts (UITs) in the United States, and similar funds offered to investors in jurisdictions worldwide. ICI seeks to encourage adherence to high ethical standards, promote public understanding, and otherwise advance the interests of funds, their shareholders, directors, and advisers. ICI’s members manage total assets of US$29.1 trillion in the United States, serving more than 100 million US shareholders, and US$9.6 trillion in assets in other jurisdictions. ICI carries out its international work through ICI Global, with offices in Washington, DC, London, Brussels, and Hong Kong.

Contact: Matthew Beck, ICI +1 202 326 5891 [email protected]


SIFMA is the leading trade association for broker-dealers, investment banks and asset managers operating in the U.S. and global capital markets. On behalf of our industry's nearly 1 million employees, we advocate for legislation, regulation and business policy affecting retail and institutional investors, equity and fixed income markets and related products and services. We serve as an industry coordinating body to promote fair and orderly markets, informed regulatory compliance, and efficient market operations and resiliency. We also provide a forum for industry policy and professional development. SIFMA, with offices in New York and Washington, D.C., is the U.S. regional member of the Global Financial Markets Association (GFMA). For more information, visit

Contact: Katrina Cavalli, SIFMA +1 212 313 1181 [email protected]

Kristi Morrow

[email protected]

+1 617 880 6770

Eric Hazard, Vested
+1 917 765 8720
[email protected]

Ana Reynaud, Greentarget
+44 (0) 203 963 1912 
[email protected]

Yuri van der Leest, Teneo 
+852 3655 0504
[email protected]

Emma Cullen-Ward, OneProfile
+61 2 8915 9900
[email protected]